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Luxury brands suffer suffer, but customers with high networks still spend, say consultants, say consultants

Luxury brands suffer suffer, but customers with high networks still spend, say consultants, say consultants

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The result of the first quarter of LVMH, Burberry and other noble brands had sunk, but consultants do not see how their HNW customers change their expenses or investment habits.

Based on the latest earnings publications by POSH fashion providers such as LVMH and Burberry, people with high networks seem to reduce luxury items.

So does this mean that the Monied set also reduces your investment purchases? Financial consultants who plan their own discretion must know.

LVMH (ticker: LVMHF), the French company behind Louis Vuitton and Dior, fell by 2 percent and profit from recurring business activities compared to the previous year by 14 percent, according to the quarterly report published last month. Elsewhere, the legendary British luxury brand Burberry explained yesterday in the first three months of 2025 by 6 percent and plans to eliminate 1,700 roles worldwide by 2027.

In the meantime, the sales of the fashion giant Gucci fell by 25 percent in the first quarter of the year, as was reported last month by his French company parents Kering.

Merging everything together and it seems sensible that individuals with high network value (HNW) tighten their wallet springs or change their consumption habits due to tariff or fear of recession. As a result, asset managers can also enter a new environment when it comes to managing their most applicable customers.

Dave Alison, President and founding partner of Prosperity Capital Advisors, said so far that he does not find any changes in the spending patterns of his HNW customers.

“While the tariffs caused a lot of uncertainty and caused market losses, most of our HNW customers remained the course with their investment plan, and some even doubled to buy the dip, and since the market was largely recovered, they were rewarded and I believe that their trust in the expenses was not shaken,” said Alison.

Elsewhere, Samuel Diarbakerly, founder of Generation Capital Advisors, said his customers who negatively influenced their income from the tariffs, had “absolutely tightened their belts in luxury expenses”.

“We have only seen a withdrawal of expenses among customers who have sources of income in terms of production in China or raised countries. With the uncertainty where the chips will fall, we advise the customer to be conservative,” said Diarbakerly.

In the meantime, Diarbakerly said that his customers had not spared more shares and bonds before buying more shares.

“The volatility has offered our customers an excellent opportunity to find high -quality individual stocks such as Broadcom (ticker: AVGO) that exchanged a deep discount than the market. In generation Capital, our customers are ready to continue to capitalize if we are withdrawing a further tariff, especially since the bonds were not a viable investment for our customers,” said diagram.

Jeff Erickson, Managing Director for Investments in Callan Family Office, said that the strenuous buyers of the sticky high prices and tariff problems on the luxury goods market are far influenced than from HNW persons. In his view, they are less willing to extend financially to make these purchases in this environment and, together with disappointing sales, explain the fall in luxury product sales.

With regard to his customers, Erickson said that the Callan Family Office did not record a decline in discretionary expenses or investments. According to Erickson, the journey for vacation and expenses for large ticket items did not make sense.

“In general, they are nervous because of the rapid pace of the political change of the government, but they adhere to their long -term investment plans and their wealth allocations,” said Erickson.

After all, Jim Carroll, Senior Wealth Advisor and portfolio manager at Ballast Rock Private Wealth, believes that the recent declines of the global luxury markets actually contribute to the fears of potential recession. His perspective is that the most important global luxury markets are strongly dependent on European and Asian markets, in which the economic conditions that have not yet been observed in the United States have been weakened.

“Geopolitical uncertainties and the latest 'tariff tanning' have caused our US customers to withdraw the discretionary expenses, but generally do not change their perspective on the investment strategy. Some customers have seen the recent downturn as an opportunity to increase the investment exposure, while others see an attitude to additional use of capital.

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